- A public statement states that the SEC has given its formal approval to the MicroStrategy ETF.
- The issuer of MSTX, Defiance ETFs, is well-known for its emphasis on leveraged ETFs.
The SEC has given the green light to MicroStrategy tracking exchange-traded fund (ETF). The MSTX exchange-traded fund (ETF) is offered by Defiance ETFs and aims to replicate 175% of the daily stock return of MicroStrategy.
A public statement states that the SEC has given its formal approval to the MicroStrategy ETF. As a result of this green light, MSTX will join the ranks of other leveraged single-stock exchange-traded funds (ETFs) that track MicroStrategy, a firm well-known for its large Bitcoin holdings.
Leveraging Bitcoin Exposure
The issuer of MSTX, Defiance ETFs, is well-known for its emphasis on leveraged and themed exchange-traded funds. Investors should anticipate that MSTX will provide them with further exposure to Bitcoin since MicroStrategy has large Bitcoin reserves.
The unique possibility that MSTX offers to investors was highlighted by Sylvia Jablonski, CEO of Defiance ETFs. According to Jablonski, MSTX provides investors with a chance to get the most out of their leveraged exposure to the Bitcoin market via an ETF since MicroStrategy has a larger beta than Bitcoin.
Investors may get exposure to the unpredictable Bitcoin market via a conventional financial instrument, thanks to the ETF, as the business holds over 226,500 Bitcoin as of Q2 2024. With any luck, MSTX and similar leveraged ETFs will deliver returns that are multiples of the daily investment %.
Aiming to replicate the daily return of the firm’s stock—which is highly related to the price of Bitcoin—the MicroStrategy ETF aspires to attain a return of 175%. Nevertheless, returns over longer time horizons might vary due to the usage of leverage by these ETFs.
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